Eddie Barnes: Why the days of ‘freebie’ Scotland are numbered

Published on 26/09/2012 00:41

JOHANN Lamont’s speech yesterday put the focus back on the desperate financial prospects facing Scotland’s public services.

First, the money has run out. With all spending being squeezed to restrain the growth in Britain’s £1 trillion public-debt mountain, the Scottish Government’s grant is to fall by 18 per cent from 2009 to 2017, according to the Centre for Public Policy and the Regions (CPPR).

About half of that fall has already taken place. But, with growth prospects way below expectations, the UK Treasury is working up further cuts.

Some analysts believe it would be “prudent” to expect a further £1 billion being lopped off Holyrood’s £28bn cash pot in two years’ time.

Second, the cost of the ageing population is coming to bear. Lamont noted the 144 per cent increase over the next 20 years in the numbers of those aged 85 and over.

NHS boards and councils are warning of a demographic 
time bomb.

NHS Ayrshire and Arran, for example, has estimated that it may need twice as many hospital beds by 2032 on current trends.

And third, warn some public bodies, the State is piling more pressure upon itself by continuing to pay for so many “freebies”.

In Scotland, these include free prescriptions, free tuition, free bus travel and free personal care.

Two years ago, a Scottish Government commissioned report led by the former Scottish Enterprise boss Crawford Beveridge said the costs “appear to be unsustainable” and recommended means testing and user charging.

Some public sector analysts have warned MSPs that ministers could be in the position of having to push up tax on low-income workers to fund free entitlements.

Others, such as Lord Sutherland – the architect of free personal care – have asked why Scotland still has 
32 individual councils.

Ministers are planning to integrate health and social care, as they struggle to find more efficiencies.